6 months to 2 years. That’s what I’ve been reading by the industry analysts. The Saudis think that they have a good handle on the finances used by the US exploration companies, which is essentially junk bond rates that they are paying to service their debt. They figure if they hold the price below $50 bbl then those companies will begin going bankrupt in about 6 months when their cash reserves are sucked dry. When enough of them go under, the Saudis will jack the price on us — but probably not until after the Republicans jack our federal gas tax on us.
We should be buying them out and filling up our salt mines at these prices.
Good analysis.
...6 months to 2 years. ...
That is only if you look at this as strictly a play at harming US fracking.
The Saudi’s have a much bigger board to play on, and that is globally.
Lower oil pries squeeze the lower players in OPEC, there by default, allowing Saudi Arabia to enhance their power within OPEC.
Also forcing the price of oil lower cripples two of Saudi Arabia’s enemies Iran and her ally Russia.
Saudi Arabia is playing both a economic and political hand and taking a long term out look to this move. This could go on for a while.
our side are just asses expecting us to just love them and be so dumb - why on earth do we not expect prices to go back up, and gas prices’always go up very quickly when they go up.
to think b/c prices are down it’s a great time to raise taxes is insanely communistic.
it’s over. republicans no longer represent us. they represent big govt, wasting hundreds of billions of dollars a year, redistributing hundreds of billions of dollars a year, never advocating fundamental change, scared to really’fight for anything except taking down conservatives who their biggest complaint is they won’t compromise their beliefs and cave to the repubtard kabuki rinos/gop-ers.
we’re done. franklin’s been proven correct. the govt is corrupt and there is only one real way to get it back.
How true. Lower the price, then raise taxes, then raise prices back up. The Rino’s are showing their true color.....yellow.
Then the U.S. companies with loans simply need ask for a temporary forbearance on some of their monthly payments and ride it out. I’m sure the lenders would rather wait to get paid back rather than face getting wiped out through the bankruptcy courts. If 2 years is the predicted outside term and the oil exploration companies can at least make some of the payments, that’d be totally acceptable to the majority of institutional lenders. When prices rise again they can get caught up on any amounts they’d been coasting on. Or they can extend the terms and repay over a few extra years on the back end.
The house of Saud seems to be playing a game they’re not likely to win.